In a positive turn of events for the spirits industry, exports of American spirits experienced a notable 8% increase in 2023, totaling $2.2 billion, as reported by the Distilled Spirits Council of the United States. This surge followed the European Union's decision to suspend the 25% retaliatory tariffs on American whiskey.
The tariff suspension, initiated in 2022, revitalized U.S. spirits sales in key markets such as the United Kingdom and the EU, both of which rank among the top five export destinations for this category.
Specifically, the export of American whiskey to the EU soared from $439 million in 2021 to $705 million in 2023, signaling a significant recovery.
The trade dispute, which originated in 2018 with import taxes imposed by the EU and the United Kingdom on various US products, including bourbon whiskeys, adversely impacted US spirits exports and led to a decline in market share for American whiskeys like Tennessee whiskey, Bourbon, American Rye whiskey, and American Single Malt in major export markets.
In December, the EU and US agreed to extend the tariff suspension until March 2025. However, if no resolution is reached during this extension period, the EU plans to escalate tariffs on American whiskeys to 50%.
Robert Maron, Vice President of International Trade at the Distilled Spirits Council of the United States, highlighted the possibility of stockpiling occurring in the latter half of 2023 in anticipation of the impending tariff hike. This heightened demand for premium American spirits in international markets contributed to the strong performance witnessed.
According to the Council's data, American whiskeys recorded a robust 9% increase in export value, reaching $1.4 billion and accounting for 63% of all US spirits exports in the previous year.
